June 30 2011 QE2 ends. The 10yr yield has jumped, and so have stocks, one is in for a shock.
From ZeroHedge Extract
.."Goodbye net monetization of US debt. Going forward the Fed will only roll maturing debt, as per QE Lite announced in early August, and due to the fact that it will be roughly one fifth the notional periodic impact of QE2, is not what so many erroneously classify as QE2.5. The biggest question of who will buy bonds now"..
COMMENTS: The last time QE ended (May 2010), a few days latter the world was presented with a new financial terminology 'Flash Crash'. This current bounce in stocks is expected, but a new high in stocks is extremely doubtful with no QE. Both Japanese experiences with QE ending saw stocks sell off for a long time, so has USA gone all Japanese'a, we shall see very soon. Watch this space, fireworks should follow.
The chart is a reminder posted on this blog some time back.